1.

X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1 respectively. The firm was dissolved on 1st March, 2013. After transferring assets (other than cash) and third party liabilities to the 'Realisation Account' you are provided with the following information:(a) There was a balance of ₹ 18,000 in the firm's Profit and Loss Account.(b) There was an unrecorded bike of ₹ 50,000 which was taken over by X.(c) Creditors of ₹ 5,000 were paid ₹ 4,000 in full settlement of accounts.Pass necessary Journal entries for the above at the time of dissolution of firm.

Answer» X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1 respectively. The firm was dissolved on 1st March, 2013. After transferring assets (other than cash) and third party liabilities to the 'Realisation Account' you are provided with the following information:

(a) There was a balance of ₹ 18,000 in the firm's Profit and Loss Account.

(b) There was an unrecorded bike of ₹ 50,000 which was taken over by X.

(c) Creditors of ₹ 5,000 were paid ₹ 4,000 in full settlement of accounts.

Pass necessary Journal entries for the above at the time of dissolution of firm.


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